THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT CONSTITUTES INSIDE INFORMATION AS STIPULATED
UNDER THE UK'S MARKET ABUSE REGULATION. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, SUCH INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
30 April 2024
James Cropper plc
('James Cropper',
the 'Company' or the 'Group')
Full Year Trading
Update
FY2024 profitability expected to be
slightly ahead of expectations
James Cropper PLC (AIM: CRPR), the Advanced
Materials and Paper & Packaging group, is pleased to issue an
unaudited trading update for the 52 week period to 30 March 2024
("FY2024").
For FY2024, the Board expects, subject to
audit, to report revenue in line with, and profits slightly ahead
of its previous expectations. The outlook for FY2025 is
encouraging, with a return to growth expected across both the
Advanced Materials and Paper & Packaging businesses for the
full year.
Advanced
Materials
The Advanced Materials business saw a
year-on-year contraction in revenue, primarily reflecting the
slowdown in fuel cell market demand. This was partially offset by
growth in the hydrogen electrolyser business where, despite the
delays to expected projects reported in January 2024, the business
continued to acquire new customers through trials and specification
development with electrolyser OEMs. Targeted capital
investment has continued in the business to support customers,
enhance efficiency, and ensure the Advanced Materials business
remains well positioned to meet the expected future growth in this
area.
The core (non-hydrogen) Advanced Materials
business was underpinned by growth in the aerospace and automotive
sectors. The focus remains on delivering growth in these sectors,
as well as carbon capture, batteries and other renewables, and
defence.
The mid-term outlook for both the hydrogen and
the core business remains strong.
In addition, the Board is pleased to announce
the appointment of a new managing director for the
Advanced Materials business, who will join the Group at the end of
July 2024 and be based at the Group's main site in Burneside. The
new managing director comes with over 30 years of experience in the
Advanced Materials industry. An announcement containing further
details will be made following notice period
restrictions.
Paper &
Packaging
Within the Paper & Packaging business,
supply chain destocking compounded by the impact of high inflation
on consumer confidence continued to be felt through the second half
of the year.
Despite volume pressures, customer retention
remained high as the business benefits from strong relationships at
the channel, converter and end customer levels. Lower input costs
(energy and carbon tax), mix improvements and productivity
initiatives, as well as maintenance of strong average selling
prices, are helping to protect margins.
Planned restructuring activity was completed
during the third quarter of FY2024 on schedule, and work is ongoing
to optimise the new operating model.
The future project pipeline is encouraging and
forward indicators, such as order intake, point to early signs of
market recovery throughout FY2025.
Notice of
results
The Group's audited results for
FY2024 are expected to be announced in July
2024.
Finance and
net debt
The Group has managed its working capital and
capital expenditure robustly, both of which are lower than the
previous year, resulting in a better net debt position at the
period end than previously expected.
The Group has continued to operate in
compliance with its banking covenants throughout FY2024.
Following the challenging trading conditions reported in the
second half of FY2024, it is currently seeking temporary covenant
adjustments on its UK banking facility to ensure sufficient
headroom is retained. Discussions with banks have commenced and a
further update will be provided in due course.
Steve Adams, CEO of James Cropper,
said:
"I am pleased with the response from our whole
organisation to the challenging trading environment over the second
half of the year.
"Our priority has been a relentless focus on
business development, leveraging our strong product and technology
offer. We have addressed the drop in volumes by protecting our
pricing, delivering continuous improvement in all our operations,
driving down input costs and maintaining tight cost
control.
"The Advanced Materials business has continued
to strengthen its technological leadership whilst maintaining
strong customer relationships, as well as building world class
partnerships and identifying future accelerated growth
opportunities.
"The Paper & Packaging business continues
its focus on driving value growth through operational effectiveness
and building on its strong brand and capability leadership in
luxury packaging.
"As a Group, we have remained steadfast in
focusing on our strategy for accelerated growth and the Board is
confident that the growth prospects of the Group, as a whole,
remain significant in the coming years."
Enquiries:
James Cropper
plc
Andrew Goody, CFO
Stephen Adams, CEO
Tel: +44 (0)1539 818 202
Shore Capital
- (Nominated Adviser and Broker)
Daniel Bush, David Coaten, Henry Willcocks,
Lucy Bowden
Tel: +44 (0)207 408 4090
Buchanan
Communications - Financial PR
Chris Lane, Charles Ryland, Jamie Hooper,
Verity Parker
jamescropper@buchanancomms.co.uk
Tel: +44 (0) 207 466 5000
|
Notes for editors:
James Cropper is a market leader in
Advanced Materials and Paper Products, centred
around four
market audiences: Future Energy, Technical Fibres, Luxury
Packaging and Creative Papers.
A purpose-led business, built upon
six generations of the Cropper family, James Cropper has a 500+
international workforce and an operational reach in over 50
countries.
Established in 1845, the Group
manufactures creative papers, luxury packaging and advanced
materials incorporating pioneering non-wovens and electrochemical
coatings.
James Cropper is a specialist
provider of niche solutions tailored to a unique customer
specification, ranging from substrates and components in hydrogen
electrolysis and fuel cells to bespoke colours and textures in
paper and moulded fibre packaging designed to replace single use
plastics.
The Group operates across multiple
markets from luxury retail to renewable energy. It is renowned
globally for service, capability, pioneering and multi
award-winning commitment to the highest standards of
sustainability.
James Cropper's goal is to be
operationally net zero by 2030 and to reduce carbon through its
entire supply chain to net zero by 2050.